DEFENSE LOGISTICS AGENCY

HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

April 16, 2017 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1179, 

Automatic Disposal Procedures for Materiel Managed under Obsolete DLA Supply 

Center Routing Identifier Codes (RICs) (Supply) 

The attached change to DLM 4000.25, Defense Logistics Management Standards, and DLM 

4000.25-2, Military Standard Transaction Reporting and Accountability Procedures (MILSTRAP), is 

approved for implementation within 12 months of the date of this approved change. 

Addressees may direct questions to Mr. Rafael Gonzalez, email: Rafael.Gonzalez@dla.mil; 

or DLMSSDR@dla.mil, Ms. Ellen Hilert, DOD MILSTRIP and Supply Discrepancy Report (SDR) 

System Administrator, e-mail: ellen.hilert@dla.mil; or Mr. Ben Breen, SDR Alternate, e-mail 

benjamin.breen@dla.mil. Others may direct questions to their Service or Agency designated 

Supply PRC representative available at www.dlmso.dla.mil/eLibrary/ServicePoints/allpoc.asp. 

HEIDI M. DAVEREDE

Program Manager

Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD (SCI) 

DLA SDR PRC members
Attachment, ADC 1179

Page 1

Attachment to ADC 1179

Automatic Disposal Procedures for Materiel Managed under 

Obsolete DLA Supply Center Routing Identifier Codes (RICs)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Functional POC: DLA Distribution, Joseph Rutkowski, DLA Distribution J4 

Receiving BPA, 717-770-6946 (DSN 771)

b. Technical POC: DLMS Program Office, Rafael Gonzalez 717-770-6817; Ellen Hilert 

DSN: 703-767-0676

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Supply

b. Primary/Secondary Functional Process: Receiving/Disposal/Supply Discrepancy 

Report (SDR)

3. REFERENCES:

a. ADC 1022, Procedures for Processing Depot Returns (Including Receipt, SDR and 

Revisions to Time Standard for reclassification of Supply Condition Code J and K assets), dated 

October 19, 2012

b. ADC 1022A, Procedures for Processing Depot Returns - Revised Exclusions from 

Automatic Disposal Procedures, dated September 04, 2014

c. Defense Logistics Manual (DLM) 4000.25-2, Military Standard Transaction Reporting 

and Accountability Procedures (MILSTRAP)

d. DLM 4000.25, Defense Logistics Management System, Volume 2, Supply Standards 

and Procedures Chapter 13

e. DLM 4000.25-1, Military Standard Requisitioning and Issue Procedures (MILSTRIP)

f. DLM 4000.25, Defense Logistics Management System, Volume 4, Military Standard 

Billing System (MILSBILLS)

4. REQUESTED CHANGE(S): Green highlighting identifies significant revisions/ 

clarification of procedures subsequent to PDC staffing.

a. Brief Overview of Change: This change revise receipt and disposal procedures to 

authorize automatic disposal at DLA Distribution Centers during receipt of returned materiel 

previously managed under now obsolete DLA Routing Identifier Codes (RIC) (S9_).
Attachment, ADC 1179

Page 2

b. Background:

(1) DLA consolidated all active national item identification numbers (NIIN) 

managed by legacy DLA Supply Chains under S9_ RICs into the DLA single item manager RIC 

SMS. DLA initiated catalog updates in the Federal Logistics Information Service (FLIS) and 

associated logistic reassignments in conjunction with DLA modernization under a consolidated 

enterprise resource planning system. Inactive NIINs were never migrated to the SMS RIC and 

on February 2, 2008, DLA authorized the disposal of all undocumented materiel identified as 

DLA managed in FLIS and having a RIC beginning with S9. 

(2) DOD Components continue to ship inactive on-hand NIINs to DLA 

Distribution without proper authorization, while failing to provide a valid prepositioned materiel 

receipt (PMR) to DLA Distribution sites. Inducting unauthorized returns under S9_ RICs into 

the Distribution Standard System (DSS) triggers submission of a receipt transaction the owner. 

This receipt results in an internal Enterprise Business System (EBS) iDOC (internal intermediate 

document) failure for the receipt transaction and requires manual intervention to research and 

resolve. These S9_ RICs (now inactive) cannot hold inventory and there is no Material Master 

Record in EBS to enable the system to create a disposal order. As a result, DLA must manually

create a disposal action via DSS. Once DLA creates the disposal action, it remains in the 

disposal workload bank until dropped/worked by the distribution center. 

(3) Current procedures also result in SDRs that EBS cannot process systemically; 

WebSDR must convert these SDRs and email them to DLA. DLA must process any of these

SDRs requiring disposition instructions manually. Otherwise, the SDR action will remain open

in DSS and the WebSDR database.

(4) This DLMS change leverages automatic disposal procedures originally 

approved under ADC 1022 (Reference 3.a.) and ADC 1022A (Reference 3.b.). 

c. Requested Change in Detail: DLA Distribution Centers will apply automatic 

disposal procedures during receipt of returned materiel previously managed under obsolete DLA 

Routing Identifier Codes (RIC) (S9_) for which there is no PMR. The following new procedures 

apply.

(1) DLA Distribution will establish screening criteria for use during distribution 

center receipt processing to facilitate automatic disposal of materiel regardless of the condition 

of the item received by DLA Distribution for the following owner RICs: S9C, S9E, S9G, S9I, 

and S9T. DLA Distribution must employ the current FLIS information for identification of the 

S9_ manager RIC. 

(2) DLA Distribution receipt of S9_ materiel will be subject to MILSTRAP

automatic disposal exemption criteria, including selected controlled inventory item codes, 

demilitarization codes, and radioactive water type cargo codes established under DLMS, Volume 

2, Chapter 13 (Reference 3.d.). 

(3) When automatic disposal action is taken, the distribution center will cite 

Supply Condition Code (SCC) H (Unserviceable (Condemned)) and Management Code M 

(excludes shelf-life materiel) or Management Code T (expired shelf-life materiel), 
Attachment, ADC 1179

Page 3

(4) DLA Distribution Centers will generate informational SDRs for corrective 

action and trend analysis using Action Code 3B. The SDR will identify Discrepancy Code Z1 

(see remarks), Z3 (no PMR), and any other applicable discrepancy code. SDR remarks will 

state, “Unauthorized return; materiel processed under DLA automatic disposal procedures for 

obsolete materiel. No further action required.” The distribution center will direct the action 

copy to the S9_RIC and an information copy to the returning activity (based upon the DoDAAC 

in the document number or shipping documentation).

(5) DSS will automatically trigger creation of a Disposal Release Order (DLMS 

940R/Legacy MILSTRIP Document Identifier Code (DIC) A5J) (Reference 3.e.) for internal 

DSS use. DSS will generate a Disposal Release Confirmation (DLMS 945A/legacy MILSTRIP 

DIC ARJ) signaling completion of the disposal action. DSS will generate Shipment Status for 

shipment to DLA Disposition Services Field Office or Recycling Control Point (RCP) under 

standard MILSTRIP procedures.

(6) DSS will suppress outbound transmission of the Receipt (DLMS 527R/legacy 

MILSTRAP DIC D6_) and subsequent Disposal Release Order/Confirmation associated with the 

automatic disposal of obsolete S9_ managed materiel. This will prevent internal EBS iDOC

failures and unnecessary manual intervention. Only Shipment Status and SDR transactions will 

exit.

(7) WebSDR will convert SDR transaction directed to DLA to email based upon 

the S9_ RIC as action activity. DLA should archive these without further action. 

(8) DLA may pursue recoupment for disposal costs from the returning activity as 

authorized under MILSBILLS (Reference 3.f.). 

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25-2, MILSTRAP, Chapter 4, Receipt and Due-In, as 

shown in the enclosure.

(2) Revise DLM 4000.25, DLMS, Volume 2, Chapter 13, Materiel Receipt as 

shown in the enclosure.

(3) Revise DLM 4000.25, DLMS Volume 2, Chapter 17, Supply Discrepancy 

Reporting, as shown in the enclosure.

(4) Revise DLM 4000.25, DLMS Volume 2, Appendix 7.28, Supply Discrepancy 

Report Relevant Data Elements, existing Discrepancy Code Z3 as follows:

“Z3 Distribution center receipt not due-in; no prepositioned materiel receipt (PMR).”

5. REASON FOR CHANGE: When DLA Distribution Centers process receipts for 

unauthorized returns under the obsolete RICs S9_, the materiel is not visible in EBS, resulting in 

manual remediation. This change will allow the automatic disposal of materiel under obsolete 

S9_ RIC eliminating manual effort and the need for storage. 
Attachment, ADC 1179

Page 4

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Updates to MILSTRAP and DLMS procedures will allow proper 

disposal of items under obsolete RICs, increase the available warehouse square footage, and 

eliminate the need for a manual process. This systematic solution will allow DLA Distribution 

to comply with Audit Readiness. Additionally, automatic suppression of receipt and outbound 

disposal transactions by DSS prevents a failed iDOC in EBS.

b. Disadvantages: There are no known disadvantages.

7. ADDITIONAL COMMENTS TO CONSIDER: Services must enforce the use of the 

MILSTRIP Materiel Returns Program (MRP), rather than returning materiel to DLA without 

authorization. The returning Service could avoid the expense of shipping obsolete materiel to 

distribution centers by observing MRP procedures. Additionally, under MILLSBILLS 

procedures, DLA may hold the returning activity accountable for disposal costs. 

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: The goal is to implement 

within 12 months of the date of this approved change. 

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: On average, the Distribution Chain processes

400 receipts a month for obsolete DLA Owner RICs. This change will eliminate the storage, 

manual disposal, and processing 400 receipts. Cost avoidance is based on past staffing:

• Disposal Report Creation – GS12 1 hour/month

• 400 Receipts = 8 Receipts s/hr. = 50 Man Hours = 1/3 FTE per month

• 400 Disposal Tickets Manually Created (GS12) = 67 hours/month = 2/5 FTE per 

month

• 400 Picks = 8 Picks/hr. = 50 Man Hours = 1/3 FTE per month

• Total cost avoidance = $65,000 - $100,000 annually

10. IMPACT:

a. New DLMS Data Elements: There are no new DLMS data elements.

b. Changes to DLMS Data Elements: Minor revision to Discrepancy Code Z3 

explanation as shown above.

c. Automated Information Systems (AIS): DLA Distribution should update DSS for

automatic disposal process as described in this change. DSS must suppress outgoing transactions 

associated with receipt and automatic disposal of obsolete materiel fitting the criteria in this 

change with the exception of the Shipment Status and SDR. There is no impact to any Service 

systems.

d. Defense Automatic Addressing System (DAAS): There are no changes to current 

transaction flows and mappings through DAAS.
Attachment, ADC 1179

Page 5

e. Non-DLM 4000.25 Series Publications: DLA Distribution must update internal 

guidance to comply with procedures delineated in this DLMS change.

11. PROPOSED DLMS CHANGE 1181A STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. Army Concur without comment. Noted.

2. Marine Corps Concur without comment. Noted.

3. Air Force Concur without comment. Noted.

4. DLA

DLA 

Distribution

Concur without comment. 

Concur. 

All actions should occur automatically/

systemically at the time of induction. 

Suppression of receipt and disposal 

transactions will be incorporated in the 

Request for Change when developed.

Noted.

5. Navy Concur without comment. Noted. 

6. DAAS N/A

7. GSA N/A
Enclosure, ADC 1179

Page 1

ENCLOSURE to ADC 1179A. Revise DLM 4000.25-2, MILSTRAP, Chapter 4 as 

shown (changes are identified by bold, red italics or double strikethrough) C4.9.3.3.1. 

“Condition of Materiel

C4.9.3.3.1.1. When inspection of inter-Service/Agency receipts reveals 

materiel to be SCC H and no PMR is recorded, storage activities will automatically ship 

discrepant materiel valued at less than $500 per item direct to the property disposal activity 

except as specified in these procedures or take other automatic disposal actions based on criteria 

promulgated by the Services/Agencies. This includes Type I shelf-life materiel which has passed 

the expiration date regardless of value. When automatic disposal action is taken, cite SCC H and 

Management Code M (excludes shelf-life materiel) or Management Code T (expired shelf-life 

materiel), in lieu of the discrepant receipt management code, in the receipt transaction for the 

discrepant quantity.

C4.9.3.3.1.1.1. GSA Managed materiel and Non-Army Managed 

(NAMI) (Routing Identifier Code (RIC) AJ2) owned materiel will not be subject to the dollar 

value threshold for disposal eligibility, but will be subject to all other automatic disposal 

screening criteria.

C4.9.3.3.1.1.2. Materiel identified to an obsolete DLA manager 

(RIC S9C, S9E, S9G, S9I or S9T) in FLIS is subject to automatic disposal at DLA Distribution 

Centers. Disposal of materiel will be subject to the existing exemption criteria stated in 

C4.9.3.3.1. When automatic disposal action applies, the receipt will cite SCC H and 

Management Code M (excludes shelf-life materiel) or Management Code T (expired shelf-life 

materiel). DLA Distribution will suppress transmission of outbound transactions associated 

with receipt and disposal action with the exception of Shipment Status and SDR transactions. 

The SDR will be prepared in accordance with SDR procedures for unscheduled receipts (no 

PMR) in DLM 4000.25 Volume 2, Chapter 17. 

C4.9.3.3.1.1.3. Automatic disposal does not apply to the 

following:

C4.9.3.3.1.1.3.1. Materiel that is identified as requiring 

DEMIL or containing radioactive, classified, or NWRM properties will not be subject to 

automatic disposal. This includes: 

• DEMIL Codes: B, C, D, E, F, G, or P

• CIIC: A-H, K, L, O, Q, R, S, T, 5, 6, 8, 9

• Radioactive Water Type Cargo Codes: A and 4

C4.9.3.3.1.1. 3.2. Materiel owned by U.S. Army Aviation 

and Missile Command (AMCOM) (RIC B17), will not be subject to automatic disposal. 
Enclosure, ADC 1179

Page 2

C4.9.3.3.1.1.3.3. Unidentified materiel will not be subject 

to automatic disposal. Follow procedures in paragraph C4.9.3.1.

C4.9.3.3.1.1. 3.4. FMS materiel will not be subject to 

automatic disposal. Follow procedures in paragraph C4.9.3.1.

C4.9.3.3.1.1. 3.5. Materiel owned by USAF will not be 

subject to automatic disposal except for non-AF managed material located at a DLA distribution 

center not co-located with a USAF depot maintenance site.

C4.9.3.3.1.1.4. Upon receipt, or subsequent storage activity 

determination, that materiel is in SCC H, where the above criteria prohibit automatic disposal, an 

SDR is will be prepared clarifying why automatic disposal is not possible and requesting specific 

disposition instructions. Where applicable the SDR remarks will inform the action activity that 

the materiel cannot be shipped to the local DLA Disposition Services Field Office and must be 

sent to an approved DEMIL/destruction center via MILSTRIP DIC A5J generated by the 

owner/manager.”

B. Revise DLMS, Volume 2, Chapter 13 as shown (changes are identified by bold, red italics

or double strikethrough)

“C13.2.8.2.10.1. Condition of Materiel

C13.2.8.2.10.1.1. No ARI File Exists. When inspection of inter-DoD Component receipts 

reveals materiel to be SCC H and no ARI file exists, automatically ship discrepant materiel 

valued at less than $500 per item direct to the DLA Disposition Services activity except as 

specified in these procedures, or take other automatic disposal action based on criteria issued by 

the DoD Components. This includes expired Type I shelf-life materiel, which has passed the 

expiration date regardless of value. When taking automatic disposal action, cite SCC H and 

Management Code M or T in the Receipt Transaction, in addition to the discrepant receipt 

management code, for the discrepant quantity. To establish an audit trail when materiel is 

condemned upon receipt and shipped directly to DLA Disposition Services, cite the disposal 

turn-in transaction number in the Receipt Transaction in addition to the original transaction 

number.

C13.2.8.2.10.1.1.1. GSA Managed materiel and Non-Army Managed (NAMI) 

(Routing Identifier Code (RIC) AJ2) owned materiel will not be subject to the dollar value 

threshold for disposal eligibility, but will be subject to all other automatic disposal-screening

criteria. 

C13.2.8.2.10.1.1.2. Materiel identified to an obsolete DLA manager (RIC S9C, 

S9E, S9G, S9I or S9T) in FLIS is subject to automatic disposal at DLA Distribution Centers. 

Disposal of materiel will be subject to the existing exemption criteria stated in 

C13.2.8.2.10.1.1.3. When automatic disposal action applies, the receipt will cite SCC H and 

Management Code M (excludes shelf-life materiel) or Management Code T (expired shelf-life 

materiel). DLA Distribution will suppress transmission of outbound transactions associated 
Enclosure, ADC 1179

Page 3

with receipt and disposal action with the exception of Shipment Status and SDR transactions. 

The SDR will be prepared in accordance with SDR procedures for unscheduled receipts (no 

PMR) in Chapter 17. 

C13.2.8.2.10.1.1.3. Automatic disposal does not apply to the following:

C13.2.8.2.10.1.1.3.1. Materiel that is identified as requiring DEMIL or 

containing radioactive, classified, or NWRM properties will not be subject to automatic disposal. 

This includes: 

• DEMIL Codes: B, C, D, E, F, G, or P

• CIIC: A-H, K, L, O, Q, R, S, T, 5, 6, 8, and 9

• Radioactive Water Type Cargo Codes: A and 4

C13.2.8.2.10.1.1.3.2. Materiel owned by U.S. Army Aviation and Missile 

Command (AMCOM) (RIC B17), will not be subject to automatic disposal.

C13.2.8.2.10.1.1.3.3. Unidentified materiel will not be subject to automatic 

disposal. Follow procedures in paragraph C13.2.8.2.9.1.

C13.2.8.2.10.1.1.3.4. FMS materiel will not be subject to automatic disposal. 

Follow procedures in paragraph C13.2.8.2.9.1.

C13.2.8.2.10.1.1.3.5. Materiel owned by USAF will not be subject to automatic 

disposal except for non-AF managed material located at a DLA distribution center not co-located 

with a USAF depot maintenance site.

C13.2.8.2.10.1.1.4. Upon receipt, or subsequent storage activity determination, that 

materiel is in SCC H, where the above criteria prohibit automatic disposal, an SDR iswill be

prepared clarifying why automatic disposal is not possible and requesting specific disposition 

instructions. Where applicable the SDR remarks will inform the action activity that the materiel 

cannot be shipped to the local DLA Disposition Services Field Office and must be sent to an 

approved DEMIL/destruction center via MILSTRIP DIC A5J generated by the owner/manager.”

C. Revise DLMS, Volume 2, Chapter 17 as shown (changes are identified by bold, red 

italics or double strikethrough)

“C17.3.6. Distribution Center Receipt with no Due In/Prepositioned Materiel 

Receipt (PMR). DLA Distribution Centers will report receipt of unscheduled materiel from new 

procurement and non-procurement sources to the owner or manager, as applicable, regardless of 

condition of materiel, as a discrepancy. 
Enclosure, ADC 1179

Page 4

C17.3.6.1. New procurement materiel with other applicable discrepancies, 

(e.g., missing receiving report/DD Form 250, improper packaging), will be placed in Supply 

Condition Code (SCC) L pending resolution.

C17.3.6.2. If other than new procurement, the SDR should show receipt 

in SCC K when the actual condition cannot be determined. Materiel returned with other 

identified discrepancies, (e.g., without associated technical data), will also be is reported as 

indicated under the appropriate discrepancy category. Returns of excess materiel that are not 

ICP/IMM directed are subject to recoupment of costs associated with disposal or repackaging 

costs incurred by the distribution Center. If the receiving activity identifies no other 

discrepancies requiring disposition instructions and is able to process the receipt to the owner 

the SDR will cite Action Code 3B for corrective action and trend analysis. The distribution 

center will direct the action copy of the SDR to the owner or manager and a distribution copy 

to the returning activity (based on the DoDAAC in the document number or shipping 

documentation.)

C17.3.6.3. Unscheduled receipts of materiel subject to MILSTRAP 

automatic disposal is reported via SDR for trend analysis and corrective action (Action Code 

3B) with a distribution copy to the returning activity. SDRs associated with DLA obsolete 

materiel (materiel managed under obsolete RICs beginning with S9) must cite Discrepancy

Code Z1 (see remarks), Z3 (no PMR), and any other relevant discrepancy code. SDR remarks 

will state, “Unauthorized return; materiel processed under DLA automatic disposal 

procedures for obsolete materiel. No further action required.”